Tag Archives: warranty

buying a repo car

Does a Repossession Change the Title or Warranty Terms on a Car?

This entry was posted in Repo Cars and tagged , , , on by .

Buying a repossessed car is a great way to save money. There’s a misconception that repossessions are old and in terrible shape, but this isn’t necessarily the case. While there will always be fixer uppers on the market, many of the cars that are repossessed by banks and lenders are newer. It’s just that their owners could no longer afford the high payments. 

When you consider that the average monthly payment for a new car is $700, you can quickly see how cars end up in repossession. Most repo cars are picked up by dealerships and then resold as used vehicles. However, at this point, they’re also getting a markup from the dealership. This means that you’re not paying true repo prices. 

RepoFinder.com works differently. We offer a directory with links to banks, lenders and credit unions all over the United States. They have repo inventory they want to sell, and they sell it to the public – not to dealers. Therefore, you do not need a dealer’s license. You can simply browse the available vehicles in your area and place a bid when you find one you like. 

Do Repo Cars Have a Clean Title? 

A common question that people ask is whether or not repossessions have clean titles. The answer: Yes. At least, they should. We do not recommend buying vehicles without a title, as this can lead to problems down the line. You could be paying for the vehicle, driving it around and maintaining it, and the ‘true’ owner can come back with the title. 

The car you buy should have a title. A ‘clean’ title means that the car was never determined to be a total loss. Other types of titles you might come across are a salvage title and a rebuilt title. It’s best to avoid salvage titles. Rebuilt titles may be okay. 

Titles show who owns the vehicle, and ideally, you want them to be clean. But a vehicle being a repossession has no bearing on the title. 

Do Repos Include a Warranty? 

As for the warranty, it’s well-known that repossessions don’t include a warranty like you would get from a dealership. You are buying the vehicle as-is, which is why you get a steep discount. In exchange for this discount, you are agreeing to take care of whatever problems the car has. It could be minimal maintenance and repairs, or it could be major issues. That’s why we always recommend having a full inspection done.

But, if the vehicle still has its original manufacturer warranty intact, a repossession will have no bearing on it. The warranty will roll over to the new owner, and you are free to use the warranty as you need it. You can also consider purchasing an extended warranty on your own. Extended car warranties aren’t always worth the money, though, so do your research. 

Bottom line: Repossession doesn’t change the title or warranty on a vehicle. If the car you’re interested in has a clean title and manufacturer warranty, this will be passed down to you. To browse the repo cars in your area, visit RepoFinder.com today

signing for car warranty

Are Extended Car Warranties Worth the Money?

This entry was posted in Used Cars and tagged , , on by .

Reliability is an important factor when buying a new or used vehicle. In fact, 95 percent of car shoppers rank reliability high, which is why having a warranty is important. But while all new vehicles come with a factory warranty, used vehicles often don’t. 

Most new vehicles come with a three-year manufacturer warranty, or 36,000 miles, whichever comes first. The majority of used vehicles are already past this. But what if you want added protection with your used car? An extended warranty may be the answer. 

What is an Extended Car Warranty? 

Extended car warranties, also known as vehicle service contracts, are optional protection plans that can help you pay for car repairs. They typically start once the manufacturer warranty ends, but there are times when the two overlap. 

Vehicle service contracts often have requirements you’ll have to follow, so be sure to read all the fine print. For example, some warranties will require you to visit a certain repair shop in your network. You’ll also need to bring your vehicle in for routine maintenance. Failure to follow your maintenance schedule can render your warranty null and void. 

Typically, you’ll be required to provide your car with the following: 

  • Oil changes
  • Filter changes
  • Tire rotations
  • System checks 
  • Manufacturer scheduled maintenance 

What Do Extended Car Warranties Cover? 

Each vehicle service contract is different, so it’s important to read the fine print of your specific warranty. Also, some warranties are basic while others are comprehensive, covering things like your car’s entertainment system and climate control system. 

The two main types of extended car warranties are: 

  • Bumper-to-bumper warranty. This is the most comprehensive type of warranty available, and it covers almost everything, from the electrical system to the paint job. It does not cover vehicle maintenance, such as oil changes and filter changes.
  • Powertrain warranty. This warranty is less comprehensive but still offers significant coverage. Expect your transmission, engine and drivetrain to be covered. It also tends to last longer than a bumper-to-bumper warranty. 

Should I Get an Extended Warranty with My Used Car? 

According to a survey from Consumer Reports, 55 percent of people said they never used their extended warranty, and only 25 percent said they would buy one in the future. While extended car warranties look good on paper, they are overpriced. They also may not cover everything, which means you’ll be paying for the warranty and the repairs. 

Of course, there are situations when an extended warranty makes sense. And, you might even get other perks with the warranty, such as roadside assistance, rental car reimbursement and towing. This can make the added coverage worth it. Ultimately, you’ll have to sit down and determine whether you’re better off putting your money into an extended warranty or into a bank account to be used for repairs.